Movement Extensions

This section describes how to define, generate and work with movement accounts.

Working with movement accounts means that you add a movement extension to existing base accounts in order to create movement accounts which reflect a movement process. This can, for example, relate to a specification for equity or fixed assets in which you want to follow the movements between opening and closing balances. In principle, movement extensions are created in the same way as ordinary accounts.

Requirements

To create movement extensions you select the Use Movement Accounts check box in the general configuration. Only the base accounts with the exact specified base account length can be used for movement accounts. A movement extension may consist of up to three characters. The movement extension and the base account together may consist of up to 13 characters. This means that the base account may consist of up to 10 characters if you are using movement extensions.

For more information, see Define General Configuration - the General 2 Tab.

Integrated Movement Accounts

If you want to work with integrated accounts, this definition is affected by movement extensions. If you are working with integrated accounts, it means that data is entered in a specification in which the closing balance is connected to the balance sheet account.

Example: Integrated Movement Accounts

The following base accounts are used:

Goodwill = 1070
Buildings = 1110
Equipment = 1200

The following movement extensions are used:

Opening balance = 010
This year's purchases = 020
This year's sales = 030
Closing balance = CBA

The following movement accounts are generated:

Table 1. Example, integrated movement accounts
Movement extensions	Goodwill	Buildings	Equipment
Opening balance	1070010	1110010	1200010
This year's purchases	1070020	1110020	1200020
This year's sales	1070030	1110030	1200030
Closing balance (CBA)	1070	1110	1200

Movement extensions for closing balances must start with CB, meaning that the current account is a closing balance, for example 1070. In this case one of the account codes A, L E, I or C must be used. The movement account is given the same account type as the base account.
For more information, see Define Account Structures - the Define Tab.

Account Types

The account type defined whether the account is to be included in the total reconciliation or whether it is a statistical account. See the list of account type codes. The account types A, L, E, I, and C are used for the Balance sheet and Profit and Loss accounts to enable balance control during data entry. The account types R, S, T, and U are statistical account types, which refer to the A, L, C, and I account types. If you generate a movement account where the base account has a different account type than the movement extension and the movement extension has a statistical account type, the generated movement account will inherit the account type of the movement extension. On the other hand, if the movement extension has a non-statistical account type, the generated movement account will inherit the account type of the base account.

Non-Integrated Movement Accounts

If you are not working with integrated accounts, this means that data is entered both in the specification and the base account. A reconciliation code in the account definition checks that the data has been correctly entered.

Example: Non-Integrated Movement Accounts

The following base accounts are used:

Goodwill = 1070
Buildings = 1110
Equipment = 1200

The following movement extensions are used:

Opening balance = 010
This year's purchase = 020
This year's sales = 030
Summation account EB - the summation account in the specification is reconciled against CBA, which refers to the base account.
Closing balance = CBA

The following movement accounts are generated:

Table 2. Example, nonintegrated movement accounts
Movement accounts	Goodwill	Buildings	Equipment
Opening balance	1070010	1110010	1200010
This year's purchases	1070020	1110020	1200020
This year's sales	1070030	1110030	1200020
Total (EB)	1070EB	1110EB	1200EB
Closing balance (CBA)	1070	1110	1200

Note: In this case one of the statistical codes (R, S, T or U) must be used as account type. The movement account is given the account type of the movement extension, because it is a statistical account. For more information, see Account Structures.